{"id":53207,"date":"2017-11-22t05:00:37","date_gmt":"2017-11-22t10:00:37","guid":{"rendered":"https:\/\/48e130086c.nxcli.net\/?p=53207"},"modified":"2024-08-14t09:30:27","modified_gmt":"2024-08-14t13:30:27","slug":"6-steps-making-new-pricing-happen","status":"publish","type":"post","link":"\/\/www.g005e.com\/2017\/11\/22\/6-steps-making-new-pricing-happen\/","title":{"rendered":"6 steps to making your new pricing happen"},"content":{"rendered":"

\"the<\/a>create bundles for each service line.
\n<\/strong><\/p>\n

by august j. aquila<\/i>
\nprice it right<\/i><\/a><\/p>\n

this is where the rubber meets the road. the future of pricing professional services is making the move to value pricing.<\/p>\n

more:<\/b> 5 ways to get clients to accept a new pricing philosophy<\/a> | how to get partners to accept a new pricing philosophy<\/a> | 12 pricing factors beyond cost<\/a> | 13 questions about providing value<\/a> | how demand affects pricing<\/a> | how to shift from production to marketing orientation<\/a> | how traditional fee methods hurt firms<\/a>
\n\"goprocpa.com\"exclusively for pro members. <\/span><\/strong>log in here<\/a> or 2022世界杯足球排名 today<\/a>.<\/span><\/p><\/blockquote>\n

while you may want to make it an option for your firm, i strongly suggest that you make it the <\/strong>option. i know from experience that value pricing is better than billing for your time.
\n
\nhere is a hands-on approach to implementing it in your firm.<\/p>\n

    \n
  1. educate yourself and your partners.<\/strong> you have already taken the first step by reading this. there are many articles on value pricing that you will find on the internet. read as many as you can. talk with your colleagues in other firms and at aicpa and state society conferences.you need to believe that this is a better way to price your services. hence you need to be able to articulate your belief by communicating to clients how they can benefit from value-based pricing. work with your marketing department or a communication consultant to help you.<\/li>\n
  2. offer three levels of service.<\/strong> whether it is a monthly service or a one-time project, offer your clients three options. think of it like the levels that american express offers its card members \u2013 green, gold and platinum.this is important because it gives your clients the opportunity to determine the perceived value of the service. the following table provides an example of what you would provide a cas client. each level of higher service includes all the services in the lower level.<\/li>\n<\/ol>\n

    \"chart<\/a><\/p>\n

      \n
    1. create these levels of service for all of your compliance and consulting services.<\/strong> once this is done you can start to determine the pricing for each level. this may take some trial and error. it should be a team effort, so include people from all departments. the goal is to eventually maximize your profit.<\/li>\n<\/ol>\n

      create basic bundles for each service line and mixture of services. don\u2019t create too many bundles, which just makes it more confusing. you can always customize a bundle when you are proposing to a new client or discussing your pricing with existing clients.<\/p>\n

      make sure that your lowest level of service is profitable. this is not a loss leader. each level should increase profitability. platinum level should be your most profitable level.<\/p>\n

        \n
      1. let your clients and team members know what is happening.<\/strong> now you have your bundle structure and price ranges, you can start the communication process. you need to inform your major clients face to face. let them decide what they need. if your lowest level is below your profit goal, you will need to tell these clients that their fees will be increasing. remember, a client who does not contribute to your bottom line is not a client.this step will cause you to think about the value you bring to your clients. your team members also need to buy into the idea that they are adding value to the client engagement.<\/li>\n<\/ol>\n

        you will either succeed or fail at this step. as yoda said, \u201cthere is no try, only do.\u201d you are changing from an hourly mentality to a value mentality at this stage of the process.\u00a0 there is no easy way to do it. don\u2019t let a few mistakes cause you to say, \u201cthis doesn\u2019t work, we tried it once.\u201d<\/p>\n

          \n
        1. remember each client is different.<\/strong> if you follow this process, you will come to have a better appreciation and understanding of your clients. if you take the time to do this right you will learn a lot about your client needs and hence, be able to provide them with the level of service that they need. in this stage you need to listen to your clients so that you can help them solve any problems they may be facing. the best way to understand their problems is to ask them open-ended questions about their business, and their accounting, tax and advisory needs. this is what being a trusted advisor is about \u2013 solving client problems.<\/li>\n
        2. take your time in implementing this new pricing method.<\/strong> there is no reason to rush into this new process. if you do, you are only asking for a disaster. you might want to start with a new client and see what happens. each time you implement the new pricing you will learn something new and become more confident with the process.<\/li>\n<\/ol>\n

          finally, remember that value-based pricing is about delivering results. the more successful we make our clients, the more they value us and are happy to pay our fees. it\u2019s a win-win situation.<\/p>\n","protected":false},"excerpt":{"rendered":"

          create bundles for each service line.<\/strong>
          \nby august aquila<\/em>
          \n          price it right<\/a><\/em><\/p>\n","protected":false},"author":1331,"featured_media":49056,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","footnotes":""},"categories":[2274,3120],"tags":[4278,3958,4281,4283],"class_list":["post-53207","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pricing","category-pro-member-exclusive","tag-billing-rate","tag-cpa-billing-rates","tag-fee-structure","tag-pricing-rates"],"acf":[],"yoast_head":"\n6 steps to making your new pricing happen - 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